That’s a leading factor in fetching the highest price from foreign real estate investors, according to Gregg Logan of RCLCO. During Thursday’s Candid Conversation event, Logan told ULI members that the closer a property is to a theme park, the higher price per square foot it fetches. Logan, and Juliana Neves of the Glasstone Group, dished on the impact of foreign capital on vacation rental property development.
Neves’ group sells and manages property with a focus on foreign investors. She revealed that community amenities – especially water-related features and restaurants – are important to foreign buyers. Neves explained that newer communities feature swanky clubhouses and pricey water slides or other water structures such as lazy rivers.
What keeps interest high in the Central Florida vacation rental market? Both Logan and Neves agreed that foreign investors love our stable economy and dollar, believe our real estate is a good value compared to other areas, and it’s a desirable location. They and their families are tourists, too.
Buyers from the United Kingdom still lead the pack, but Brazilians, Venezuelans and Chinese investors increasingly are turning to Central Florida vacation real estate. And, the Brits are buying more resale properties rather than new offerings in resort communities.
ULI members learned that while mega-homes sporting 10 or more bedrooms bring a higher investment return with increased occupancy potential, the three to four-bedroom townhomes or condos appeal to the newer investors looking to spend up to $400,000 on their first buy.
Important takeaways: 1) this sector relies on a continued robust tourism market, and 2) even in a downturn, those properties closest to Disney’s front door should produce returns to the investor.
Don’t miss the next members-only Candid Conversation with ULI of Central Florida for insights from our region’s land use, development and real estate experts.